Don't Miss Out On Great Gains! - Best Investment Newsletter

Search For More

Tuesday, November 04, 2008

Best 1-Year CD Rates with FDIC

Before the Federal Reserve lowered the Fed Funds Rate to 1.00%, I bought a 4.30%, 1-Year CD at Wachovia Bank. Banks have to pay the US government 5.0% to get money from Treasury Secretary Hank Paulson's "troubled asset relief program" or TARP for short. Rather than pay the government 5.0% for TARP money, they are better off bringing in new customers with high CD rates despite the low Fed Funds and US Treasury rates.

Comerica Bank has a special 4.00% APY 1-year CD with FDIC insurance up to $250,000. Details:

New Federal Deposit Insurance (FDIC) Limits:Congress has temporarily increased FDIC deposit insurance from $100,000 to $250,000 per depositor through December 31, 2009. Changes have also been made to other account types.